CSSB 284(RES): "An Act relating to bonds issued to repair, improve, or maintain the four dam pool; and relating to the four dam pool transfer fund and the power development fund."
00CS FOR SENATE BILL NO. 284(RES) 01 "An Act relating to bonds issued to repair, improve, or maintain the four dam 02 pool; and relating to the four dam pool transfer fund and the power 03 development fund." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSE. (a) The purpose of this Act is to facilitate the issuance of bonds 06 or other debt by the Alaska Energy Authority so that needed repairs can be made to the 07 hydroelectric facilities that make up the initial project. 08 (b) It is the intent of the legislature that the authority and the purchasing utilities 09 continue to negotiate in good faith with respect to the transfer of ownership of the initial 10 project to the utilities, and that a transfer plan or other long-term solution to the economic 11 difficulties of the initial project be presented to the Twentieth Alaska State Legislature. 12 (c) In this section, 13 (1) "initial project" means the power project described as the initial project in 14 AS 44.83.398(a), consisting of the Tyee Lake, Swan Lake, Solomon Gulch, and Terror Lake
01 hydroelectric facilities; 02 (2) "purchasing utilities" means the City of Ketchikan, doing business as 03 Ketchikan Public Utilities; the City of Wrangell, doing business as Wrangell Municipal Light 04 and Power; the City of Petersburg, doing business as Petersburg Municipal Power and Light; 05 Copper Valley Electric Association, Inc.; and Kodiak Electric Association, Inc. 06 * Sec. 2. AS 42.45.050(b) is amended to read: 07 (b) Subject to appropriation, the department shall transfer the balance of the 08 four dam pool transfer fund annually as follows: [EACH MONTH IN 09 ACCORDANCE WITH THIS SUBSECTION. SUBJECT TO APPROPRIATION] 10 (1) first, to the power development fund (AS 44.83.382) in the 11 amount, if any, necessary to pay debt service on loans or on bonds issued by the 12 Alaska Energy Authority, only if the proceeds of those loans or bonds were used 13 for the purpose of repairing, improving, or maintaining the initial project as 14 defined in AS 44.83.398; 15 (2) next, the remaining balance, if any, as follows: 16 (A) 40 percent of the balance in the four dam pool transfer fund 17 shall be transferred to the power cost equalization and rural electric 18 capitalization fund to be used for power cost equalization and rural electric 19 projects; 20 (B) [(2)] 40 percent of the balance in the four dam pool transfer 21 fund shall be transferred to the Southeast energy fund to be used for power 22 projects for utilities participating in the power transmission intertie between the 23 Swan Lake and Tyee Lake hydroelectric projects; and 24 (C) [(3)] 20 percent of the balance in the four dam pool transfer 25 fund shall be transferred to the power project fund to be used for statewide 26 utility projects. 27 * Sec. 3. AS 44.83.100(b) is amended to read: 28 (b) Bonds shall be authorized by resolution of the authority, and shall be dated 29 and shall mature as the resolution may provide, consistent with the requirements of 30 this subsection [EXCEPT THAT NO BOND MAY MATURE MORE THAN 50 31 YEARS FROM THE DATE OF ITS ISSUE]. Bonds shall bear interest at the rates,
01 be in the denominations, be in the form, either coupon or registered, carry the 02 registration privileges, be executed in the manner, be payable in the medium of 03 payment, at the places, and be subject to the terms of redemption which the resolution 04 or a subsequent resolution may provide. A bond issued on or after May 1, 1996, 05 whose proceeds were used for the purpose of repairing, improving, or maintaining 06 the initial project as defined in AS 44.83.398 must mature within eight years from 07 the date of issue. Other bonds issued under this subsection must mature within 08 50 years from the date of issue. 09 * Sec. 4. AS 44.83.384(a) is amended to read: 10 (a) The fund may be used by the authority to provide money for 11 (1) the defeasance of bonds, or the payment of debt service on loans 12 for or on an issue of bonds sold in connection with a power project constructed or 13 acquired before August 11, 1993; 14 (2) the cost of operating, repairing, improving, and maintaining power 15 projects constructed or acquired before August 11, 1993; and 16 (3) debt service on power projects constructed or acquired before 17 August 11, 1993.